UFCW PA Wine and Spirits Councilhttp://www.ufcwpawineandspiritscouncil.com/
UFCW PA Wine and Spirits CouncilTue, 11 Apr 2017 08:49:00 EDTen-usState Sen. Jim Brewster has penned an OP-ED for The Intelligencer that explains the risks posed by the rush to further privatize/outsource the PLCB. The senator notes, "Those on the short end of this plan include our taxpayers — revenues and taxes are expected to yield nearly $750 million in 2016-17 — and the 4,000 workers and their families who now serve the public in the wine and spirits system."]]>Tue, 11 Apr 2017 08:49:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/sen-jim-brewster-gop-plan-to-further-expand-liquor-sales-goes-too-far
http://www.ufcwpawineandspiritscouncil.com/news/sen-jim-brewster-gop-plan-to-further-expand-liquor-sales-goes-too-farhttp://www.ufcwpawineandspiritscouncil.com/news/sen-jim-brewster-gop-plan-to-further-expand-liquor-sales-goes-too-farThe Delaware County Times publishes a Wendell W. Youn IV op-ed, which notes, "What I simply cannot fathom, however, is why so many GOP lawmakers continue to push legislation that would further dismantle a very successful “business” that delivers for all taxpayers and customers – the Pennsylvania Liquor Control Board."]]>Thu, 06 Apr 2017 07:00:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/delco-times-push-to-dismantle-lcb-makes-no-cents
http://www.ufcwpawineandspiritscouncil.com/news/delco-times-push-to-dismantle-lcb-makes-no-centshttp://www.ufcwpawineandspiritscouncil.com/news/delco-times-push-to-dismantle-lcb-makes-no-centsThe Post-Gazette publises an op-ed by UFCW Local 1776 President Wendell W. Young IV, who writes, "Basic math and common sense dictate that lawmakers should focus on strengthening the PLCB rather than dismantling this valuable asset."]]>Mon, 03 Apr 2017 05:11:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/wendell-w-young-iv-keep-the-pa-liquor-stores-which-are-an-asset-the-lcb-is-good-for-the-state-and-it-provides-good-jobs
http://www.ufcwpawineandspiritscouncil.com/news/wendell-w-young-iv-keep-the-pa-liquor-stores-which-are-an-asset-the-lcb-is-good-for-the-state-and-it-provides-good-jobshttp://www.ufcwpawineandspiritscouncil.com/news/wendell-w-young-iv-keep-the-pa-liquor-stores-which-are-an-asset-the-lcb-is-good-for-the-state-and-it-provides-good-jobsPennlive: "The PLCB generates real revenue for the state - revenue that might just come in handy in a financial crisis." ]]>Fri, 31 Mar 2017 10:33:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/theres-no-good-reason-for-lawmakers-to-uncork-these-bad-booze-bills-wendell-young-iv
http://www.ufcwpawineandspiritscouncil.com/news/theres-no-good-reason-for-lawmakers-to-uncork-these-bad-booze-bills-wendell-young-ivhttp://www.ufcwpawineandspiritscouncil.com/news/theres-no-good-reason-for-lawmakers-to-uncork-these-bad-booze-bills-wendell-young-ivThe Delaware County Times recognizes that, despite the privateers' claims, the PLCB generates significant revenue for taxpayers>]]>Wed, 25 Jan 2017 09:25:00 ESThttp://www.ufcwpawineandspiritscouncil.com/news/delco-times-plcb-delivers-profits-significant-revenue-for-all-taxpayers
http://www.ufcwpawineandspiritscouncil.com/news/delco-times-plcb-delivers-profits-significant-revenue-for-all-taxpayershttp://www.ufcwpawineandspiritscouncil.com/news/delco-times-plcb-delivers-profits-significant-revenue-for-all-taxpayersPennlive publishes an op-ed by Wendell W. Young IV, who writes, "Lawmakers need to reject the cynical ploys to dismantle valuable public assets. It's time for real and fair solutions to our state's fiscal mess. It's time to put middle class families first and it is time for us all to agree that fact still matter."]]>Thu, 29 Dec 2016 06:37:00 ESThttp://www.ufcwpawineandspiritscouncil.com/news/beware-further-efforts-to-dismantle-the-pa-liquor-control-board-in-2017-wendell-w-young-iv
http://www.ufcwpawineandspiritscouncil.com/news/beware-further-efforts-to-dismantle-the-pa-liquor-control-board-in-2017-wendell-w-young-ivhttp://www.ufcwpawineandspiritscouncil.com/news/beware-further-efforts-to-dismantle-the-pa-liquor-control-board-in-2017-wendell-w-young-ivThe Meadville Tribune publishes a letter by Wendell W. Young IV, who writes, "The recent complaints from representatives of the distilled spirits industry (“Liquor system changes could lead to markups,” Nov. 22) about the Pennsylvania Liquor Control Board’s new flexible pricing policy show the true concerns of those industry members: themselves." ]]>Sat, 03 Dec 2016 07:52:00 ESThttp://www.ufcwpawineandspiritscouncil.com/news/new-plcb-pricing-law-win-for-consumers-taxpayers
http://www.ufcwpawineandspiritscouncil.com/news/new-plcb-pricing-law-win-for-consumers-taxpayershttp://www.ufcwpawineandspiritscouncil.com/news/new-plcb-pricing-law-win-for-consumers-taxpayersThe Philadelphia Inquirer looks at the PLCB's push to modernize by opening new super stores that customers love. Sales are up at the new locations as customers enjoy larger selection. "The board has been pushing a new-store strategy since 2010, when it launched a "branding effort" to upgrade the appearance, size, and locations of its retail outlets, or open new ones." the paper reports.]]>Tue, 29 Nov 2016 06:22:00 ESThttp://www.ufcwpawineandspiritscouncil.com/news/pa-opening-bigger-better-state-stores
http://www.ufcwpawineandspiritscouncil.com/news/pa-opening-bigger-better-state-storeshttp://www.ufcwpawineandspiritscouncil.com/news/pa-opening-bigger-better-state-storesThe Pittsburgh Post-Gazette

By Tim Holden

Members of the Pennsylvania Liquor Control Board had been looking forward to discussing our fair and reasonable approach to flexible pricing before the House Liquor Control Committee Thursday, but other legislative priorities apparently necessitated the cancellation of the hearing.

In lieu of that opportunity, we would like to correct the record regarding unfounded and inaccurate assumptions that revenue increases can come only from wine and spirits price increases for consumers — assumptions such as those advanced by David Ozgo of the Distilled Spirits Council in his Oct. 21 Post-Gazette op-ed piece (“Pennsylvania’s Liquor ‘Modernization’ Hoax”).

To be clear: It is not the PLCB’s intention to broadly increase retail prices.

The fact is that the PLCB generates significant revenues for every taxpayer and it provides 5,000 jobs for Pennsylvanians, including 3,500 men and women I am proud to represent who work in the wine and spirits shops.

The PLCB last year generated more than $584 million in taxes, profits and other transfers to taxpayers.

Despite the rhetoric from the privateers, and their media champions, consumers enjoy competitive pricing and a selection of wine and spirits that rivals any private retailer out there.

Lawmakers have already done enough damage to this valuable asset by passing a law to allow more than 10,000 private retail establishments to sell wine to go. We opposed this law, Act 39, will cost taxpayers millions in lost revenue.

These new licensees will not match the selection or the prices now available. These establishments will not hire any new staff and there will be no tidal wave of new jobs as some have promised.

Lawmakers should focus their energies on improving this asset and not rush into dangerous changes more than they already have.

Wendell Young IV is president of Local 1776 of the United Food and Commercial Workers, which represents Pennsylvania state liquor store employees.

On behalf of the 3,500 employees of the Commonwealth I am proud to represent, I am writing to urge you to reject Senate Bill 1359 and any legislation that calls further outsourcing or privatization of the sale of wine in our commonwealth. Any efforts to further weaken the state's Wine and Spirits shops will result in additional loss of revenue for all taxpayers and, ultimately, jeopardize up to 5,000 family-sustaining jobs that the Pennsylvania Liquor Control Board (PLCB) currently provides.

]]>Wed, 21 Sep 2016 16:40:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/ufcw-urges-senators-to-reject-senate-bill-1359
http://www.ufcwpawineandspiritscouncil.com/news/ufcw-urges-senators-to-reject-senate-bill-1359http://www.ufcwpawineandspiritscouncil.com/news/ufcw-urges-senators-to-reject-senate-bill-1359Tribune-Review reports, "State wine and spirits stores tallied nearly $1.94 billion in sales for the fiscal year that ended in June, a 4.1 percent increase over the previous year, according to figures presented to the Liquor Control Board on Wednesday. Wine and liquor sales grew by more than $75 million for the 2015-16 fiscal year, up from about $1.86 billion in 2014-15, figures show. Board member Michael Newsome said he's pleased with the growth, but “we'd like to see that number a little higher in the future.”]]>Fri, 02 Sep 2016 07:51:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/plcb-sales-profit-continue-to-climb
http://www.ufcwpawineandspiritscouncil.com/news/plcb-sales-profit-continue-to-climbhttp://www.ufcwpawineandspiritscouncil.com/news/plcb-sales-profit-continue-to-climbThe Inquirer reports that, "The Pennsylvania Liquor Control Board paid $100 million in profits to state government in the year ended June 30, up from the $80 million paid in recent years."]]>Wed, 31 Aug 2016 07:48:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/httpwwwphillycomphillybusinesspa-liquor-control-board-boosts-payment-to-statehtml-2
http://www.ufcwpawineandspiritscouncil.com/news/httpwwwphillycomphillybusinesspa-liquor-control-board-boosts-payment-to-statehtml-2http://www.ufcwpawineandspiritscouncil.com/news/httpwwwphillycomphillybusinesspa-liquor-control-board-boosts-payment-to-statehtml-2Memo to Lawmakers: You Don’t Know What You Don’t Know

Before lawmakers vote on a series of major changes to the liquor code, they need to understand what they just DO NOT KNOW.

Lawmakers do not know what the fiscal impact of these amendments is on the state budget.

The House estimated that Act 39, left alone, would generate up to $150 million in new revenue. The Independent Fiscal Office estimated that Act 39 will bring in $106 million. And now, everyone in the building knows that that the amendments under consideration would reduce this amount to between $35 million to $60 million.

Lawmakers do not who, exactly, is going to benefit from the proposed change to the auction process for these expanded licenses.

It is among the worst kept secrets in the Capitol that this change is designed to benefit the big box stores.

Lawmakers do not really know what will happen if they approve the “revenue cleanup language.”

This amendment is one of several that is purposefully vague but any clarifications can be handled administratively and do not require legislative action.

Lawmakers should know one key fact:

There is absolutely no need for any legislative action whatsoever. These amendments are a further attack on the PLCB and will jeopardize up to 5,000 family-sustaining jobs and millions of dollars in state revenue.

UFCW and working families across the state urge House members to stand with working Pennsylvanians and vote no on amendments to the state's liquor code that the privateers are pushing as "technical fixes" to Act 39. Consider:

These amendments will jeopardize 5,000 family-sustaining jobs at the PLCB, and jeopardize hundreds of millions in revenue.

There is absolutely no need for any legislative action to “fix” Act 39. Any changes can be made administratively and the privateers know it.

House members can support granting a special permit for the Democratic National Convention without sacrificing a single job or a single dollar in revenue.

The PLCB is a valuable, publicly-owned asset that last year generated more than $564 million in taxes, profit and other transfers to all taxpayers. It makes no sense to weaken this asset to benefit the big-box chains.

It is time to put Pennsylvania jobs and taxpayers first and reject a back-door attempt to outsource thousands of Pennsylvania jobs.

"House Speaker Mike Turzai needs to venture outside of his Harrisburg surroundings and talk with taxpayers who are paying the price for the same old political games that he is intent on repeating this summer."Any "reality" that exists in the speaker's world is unknown to working Pennsylvanians. For starters, consider that current budget includes $268.8 million for our legislature, including a $1.7 million line item for the speaker's office. What, exactly, does this extraordinary sum of taxpayer money buy?

]]>Mon, 20 Jun 2016 10:23:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/pennlive-maybe-mike-turzai-is-the-one-who-needs-a-reality-check
http://www.ufcwpawineandspiritscouncil.com/news/pennlive-maybe-mike-turzai-is-the-one-who-needs-a-reality-checkhttp://www.ufcwpawineandspiritscouncil.com/news/pennlive-maybe-mike-turzai-is-the-one-who-needs-a-reality-checkThe UFCW PA Wine and Spirits Council is voicing strong opposition for a reckless proposal passed by the House of Representatives today that would dismantle the Pennsylvania Liquor Control Board (PLCB), which last year provided generated $564 million in state revenue, and hasten the demise of Wine and Spirits Stores.

"This legislation would worsen the state's current fiscal crisis and destroy a valuable revenue-producing asset," said Wendell W. Young IV, President, UFCW Local 1776. "Wine privatization would only further increase our structural budget deficit, leaving taxpayers to hold the bag for years to come."

Young said the bill would not generate any revenue for the Commonwealth. According to analysis by Public Finance Management (PFM), commissioned by former Gov. Tom Corbett, the state would need to come up with $408 million in new revenue annually to make privatization fiscally neutral.

Wine accounted for 42 percent of total sales in the stores or more than $848 million in revenue in the last fiscal year. The most popular brands – those most likely sold by the big box chains – accounted for approximately $518 million of total wine sales.

"This privatization proposal will begin draining dollars from the state immediately, and by reducing foot traffic in the Wine & Spirits stores, weaken this asset," Young said. "Modernizing the PLCB makes the most sense for Pennsylvania, especially given the state's multi-billion dollar budget deficit.

"Instead of destroying this revenue-generating agency, let's open more stores inside of or adjacent to grocery stores or beer distributors to improve convenience," he said.

States that have outsourced the sale of wine, including Iowa and West Virginia, ultimately lost the entire asset to the private sector. Iowa, within just three years after wine sales were privatized, experienced a 25 percent drop in revenues to the state.

Young added that the PLCB pays all of its own expenses: those associated with the State Police Bureau of Liquor Enforcement; state drug and alcohol programs; and all employees' costs, including benefits.

]]>Wed, 08 Jun 2016 15:24:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/wine-privatization-bill-generates-no-new-revenue
http://www.ufcwpawineandspiritscouncil.com/news/wine-privatization-bill-generates-no-new-revenuehttp://www.ufcwpawineandspiritscouncil.com/news/wine-privatization-bill-generates-no-new-revenueThe Pennsylvania Liquor Control Board (PLCB) continues to deliver strong returns for all Pennsylvanians and is ready to generate more profit and help the state avoid a catastrophic $2 billion deficit, said Wendell W. Young IV, President of United Food and Commercial Workers Local 1776 after agency leaders testified before the House Appropriations Committee today.

“The math tells the story. Sales are up. Profit is up. Transfers to the state are up. Each year, this asset continues to grow and improve. I am proud to represent 3,500 Pennsylvanians who work in these stores to deliver great service and a tremendous value to the commonwealth,” Young said.

Young noted the PLCB generated a record $2.34 billion in sales in the last fiscal year, an increase of 4.2 percent over the previous year. The PLCB transferred more than $580 million in profits, taxes and other payments to its shareholders – the taxpayers of Pennsylvania. In the last five years, the PLCB has sent $2.6 billion in cash to the general fund.

Young urged lawmakers to enact a series of proposals to modernize the PLCB to provide more convenience for customers and significant increases in profits. These common sense proposals include unrestricted sales on Sundays (both the number of locations and the hours of operation); the ability to sell lottery tickets and greater flexibility in procurement and pricing among others.

In all, modernization proposals would allow the PLCB to generate more than $185 million of new profits in the first year after authorization alone. This revenue would continue to grow annually.

“Many of these proposals have bipartisan support in both the House and the Senate. The state is looking at a potential $2 billion deficit in the next year unless lawmakers come together and act. Modernizing this asset will go a long way toward closing that gap,” said Young.

"The privatization of retail liquor sales in Washington State has delivered a sustained boost to the state liquor divisions in neighboring Idaho and Oregon."

"An analysis by the Alcohol Research Group at the Public Health Institute in Emeryville, California, published last year found that liquor prices rose by an average of 15.5 percent after privatization, but vary greatly by store type."

"Oregon liquor stores have also received a lasting boost from Washington consumers. Oregon Liquor Control Commission spokeswoman Christie Scott said she thinks it's not only because of the lower prices, but also because the state's liquor stores have "much better selection" than what the typical Washington grocery or drug store now stocks."

Lawmakers need to understand that prices will increase OR the state will lose money. As Sen. Chuck McIlhinney told CBS 21's Face the State in 2015:

Sen. McIlhinney: "The idea that you can take an asset that we're making money on right now and … get rid of it; have a new person come in they'll make money on it but we will still make the same amount or more money on and not have that affect the retail price of liquor….

CBS anchor: "So retail prices are going to go up?

Sen. McIlhinney: "Just like they did in the other states. In Washington … they have the highest prices for liquor in the country and they're getting a lot of complaints. But that's what it looks like if you're going to divest and try to maintain the same revenue stream."

Privatization results in higher prices, poorer selection, and a loss in state revenue. So, why, exactly, are we having this debate?

]]>Thu, 25 Feb 2016 11:06:00 ESThttp://www.ufcwpawineandspiritscouncil.com/news/four-years-later-washington-privatization-still-a-disaster
http://www.ufcwpawineandspiritscouncil.com/news/four-years-later-washington-privatization-still-a-disasterhttp://www.ufcwpawineandspiritscouncil.com/news/four-years-later-washington-privatization-still-a-disasterThe math driving Harrisburg's budget stalemate is daunting enough: The state faces a $2 billion deficit that will balloon much higher in the coming years unless lawmakers and Gov. Tom Wolf agree on a way to close it.

School districts have been compelled to borrow more than $1 billion to keep the doors open and, at some point, taxpayers will have to cover the costs for those loans.But Pennsylvanians would do well to remember that, beyond the math, words matter and, so far, much of the GOP's rhetoric coming out of the state Capitol just doesn't add up.

]]>Tue, 09 Feb 2016 17:27:00 ESThttp://www.ufcwpawineandspiritscouncil.com/news/the-gops-budget-rhetoric-doesnt-add-up
http://www.ufcwpawineandspiritscouncil.com/news/the-gops-budget-rhetoric-doesnt-add-uphttp://www.ufcwpawineandspiritscouncil.com/news/the-gops-budget-rhetoric-doesnt-add-upProposals to outsource wine and beer sales to big-box grocery stores, delis, and convenience stores make no sense. The bill would ultimately cripple the PLCB; jeopardize thousands of family-owned beer distributors and the jobs they provide; and threaten the livelihoods of 3,500 Pennsylvanians working in the Wine and Spirit Shops.

Pennsylvania taxpayers lose:

Carving out wine would cause an immediate drain on state revenues and ultimately destroy the Wine and Spirit Shops.

Wine accounted for $848 million or 42% of total sales in the shops last year. The most popular brands – those most likely to be sold by the big-chains - represented $518 million of those total wine sales.

This privatization proposal will begin draining dollars from the state immediately, and by reducing foot traffic in the Wine and Spirit Shops weaken this asset.

West Virginia and Iowa went down this road. Revenue losses grew and grew; their systems were wiped out and taxpayers were left holding the bag.

Thousands of jobs will be lost:

Stores will suffer on day one due to lost revenues. Jobs will be eliminated immediately. Job losses will increase until the stores are completely gone, just as happened in West Virginia and Iowa.

Every community in PA loses:

Minors have easier access to alcohol on grocery and convenience store shelves, and alcohol thefts will increase. Since Washington privatized liquor sales, alcohol thefts have sky-rocketed.

The PLCB is a valuable state asset that last year generated more than $584 million in total taxes, profits and other transfers for taxpayers.

On behalf of the 1.1 million Pennsylvanians we are proud to represent, we urge you to support common-sense proposals to modernize the Pennsylvania Liquor Control Board (PLCB) so that this valuable asset can generate additional revenue for all taxpayers.

Despite the rhetoric from the privateers, the fact is that dismantling the PLCB actually cost Pennsylvania at least $408 million in the first year according to Public Financial Management (PFM) and the PFM found that privatization will cost more than $1.4 billion in transition costs over five years. We urge you to carefully read the PFM study, which was commissioned by former Gov. Tom Corbett, for a fact-based analysis of the real impact privatization will have on our state budget.

So-called privatization “lite” proposals would be equally devastating. Proposals to outsource wine and beer sales to big-box grocery stores, delis, and convenience stores make no sense. These proposals would ultimately cripple the PLCB; jeopardize thousands of family-owned beer distributors and the jobs they provide; and threaten the livelihoods of up to 5,000 Pennsylvanians working right now for the PLCB.

This “reform” proposal would cause an immediate drain on state revenues and ultimately destroy the Wine and Spirit Shops system. Please note that wine accounted for $848 million or 42% of total sales in the shops last year. The most popular brands – those most likely to be sold by the big-chains - represented $518 million of those total wine sales. West Virginia and Iowa lawmakers were led down this path by the privateers and, as revenue losses grew and grew; their systems were wiped out and taxpayers had to make up for the last revenue.

The PLCB provides 5,000 family-sustaining jobs and, last year, generated more than $584 million in taxes, profits and other transfers for taxpayers. After years of debate, it makes little sense that should be clear by now that privatization of the PLCB would have disastrous consequences for Pennsylvania.

In the closing rush to a budget “framework” we urge you to focus on the real impact that privatization would have on the state’s deficit and working families across this commonwealth. Please join us and Governor Tom Wolf in supporting common-sense proposals to modernize the PLCB. This asset is poised to deliver at least $185 million in additional profit in the first year after modernization legislation is enacted. Please reject any proposals that would destroy jobs. Please do not hesitate our offices should you have any questions or need any additional information on modernization proposals.

]]>Thu, 03 Dec 2015 12:51:00 ESThttp://www.ufcwpawineandspiritscouncil.com/news/clear-coalition-urges-lawmakers-to-oppose-privatization
http://www.ufcwpawineandspiritscouncil.com/news/clear-coalition-urges-lawmakers-to-oppose-privatizationhttp://www.ufcwpawineandspiritscouncil.com/news/clear-coalition-urges-lawmakers-to-oppose-privatizationWendell W. Young IV issued the following statement today in wake of the House action concerning the future of the PA Liquor Control Board (PLCB), a valuable asset that last year provided more than $584 million in taxes, profits and other transfers to taxpayers:

“It is time for Speaker Turzai to end his assault on 5,000 working families in this state. Pennsylvanians deserve much, much better than these political games.”

Young noted that the Speaker is leading the effort to protect the Marcellus Shale drillers from a fair, statewide excise tax while pushing a plan to dismantle the PLCB. Pennsylvania remains the only major natural gas producing state that does not impose a statewide tax.

“Mike Turzai is protecting multi-billion dollar companies from paying a tax that they pay everywhere else. He wants to give them a free ride and stick middle class, working families with the tab. It’s disgraceful and it really is time for his colleagues to hold the Speaker accountable,” said Young.

“Privatization would be a financial disaster for taxpayers. Privatization will actually cost Pennsylvania at least $408 million in the first year according to Public Financial Management (PFM) and the PFM found that privatization will cost more than $1.4 billion in transition costs over five years,” Young added. That report was commissioned by former Governor Tom Corbett.

Young said that common sense, bipartisan modernization proposals to increase Sunday hours and stores; allow the direct shipment of wine to consumer’s homes; greater flexibility in pricing; and locating more stores inside of grocery stores would generate at least $185 million in new profit in the first year alone.

“This entire exercise is all about Speaker Mike Turzai’s personal agenda and it has gone on long enough. The state is facing a $1 billion deficit and Speaker Turzai needs to focus on the people of Pennsylvania instead of well-placed corporate interests,” said Young. “Perhaps Mike Turzai should start acting a little more like Robin Hood instead of acting like King John.”

Some GOP lawmakers continue to ignore the voters and basic math by holding the state budget hostage to schemes to dismantle the PA Liquor Control Board (PLCB). And they want to give the shale drillers a free pass.

The privatization math does not add up. It never does. The reckless GOP-backed privatization plan would be a financial disaster for taxpayers. Consider:

Public Financial Management (PFM), hired by Gov. Tom Corbett, found that privatization would cost taxpayers at least $1.4 billion in transition costs in the first five years alone.

PFM found that the state would have to come up with $408 million in new revenue annually to make privatization fiscally neutral. PFM also found that prices would increase in some areas of the state and that thousands of Pennsylvanians would land on unemployment.

The state would not realize a single penny in a windfall or in new revenues to help the state close the $1 billion plus budget deficit that lawmakers are now confronting.

In the last fiscal year, the PLCB generated record sales, profits and transfers to the state treasury in the last fiscal year, returning more than $584 million to taxpayers last year alone.

In the last five years, the agency has provided more the $2.51 billion to the Pennsylvania Treasury, $111 million to the Pennsylvania State Police, $9.8 million to drug and alcohol programs and $22.5 million to local communities.

The PLCB provides 5,000 family-sustaining jobs, generates a significant return for all taxpayers after every single expense is covered, and helps to protect the public safety in every community in PA.

]]>Wed, 18 Nov 2015 12:31:00 ESThttp://www.ufcwpawineandspiritscouncil.com/news/the-privateers-fuzzy-math-is-just-wrong
http://www.ufcwpawineandspiritscouncil.com/news/the-privateers-fuzzy-math-is-just-wronghttp://www.ufcwpawineandspiritscouncil.com/news/the-privateers-fuzzy-math-is-just-wrongHouse GOP Leaders continue to waste time, energy and taxpayer money by considering – again – legislation to dismantle the Pennsylvania Liquor Control Board that Gov. Tom Wolf has already vetoed, said Wendell W. Young IV, President of UFCW Local 1776.

“Here we go again. The Republican leadership continues to play political games instead of focusing on their most important responsibility – passing a state budget,” Young said. “The budget is more than four months late. Social service providers, from food banks to domestic abuse services and rape counseling services are cutting back or closing. And the House Republicans are most concerned with putting thousands of people out of work.”

Young noted lawmakers in both parties, as well as independent experts agree that under no circumstance would any privatization scheme generate new revenue in the first year.

In a study commissioned by former Gov. Tom Corbett, Public Financial Management (PFM) found privatization would force lawmakers to come up with an additional $408 million in the short term. PFM found privatization would cost more than $1.4 billion in transition costs over five years, including $58 to $68 million in unemployment compensation costs over five years.

This past fiscal year the PLCB increased its contribution by providing more than $584 million in profits, taxes and other transfers to the State Treasury. This includes contributions of $25.7 million to Pennsylvania State Police and $1.7 million to the Department of Drug and Alcohol Programs.

In the last five years, the PLCB has contributed more than $2.57 billion to the State Treasury, including $116.7 million to State Police, $10.5 million to the Department of Drug and Alcohol, and $22.4 million to local communities.

“This legislation is all about smoke and mirrors and jeopardizes revenue. Governor Wolf was right to veto this bill the last time around. This bill is just as bad today as it was in July,” Young said.

Young reiterated UFCW’s longstanding support for legislation to modernize the PLCB to allow for more Sunday stores and hours, the direct shipment of wine to homes and the opening of additional stores inside of or next to grocery stores.

“It makes no sense to break this asset up so that big chain retailers can make more money. Common sense proposals to improve the PLCB would generate at least $185 million in new revenue in the first year alone,” said Young.

In fact, only two plans have been considered by the Administration. Governor Wolf has put forth a compromise plan that would allow for private management of the state's wholesale and retail liquor operations, and allow for increased revenues through this proposal.

Governor Wolf also supports modernization proposals introduced by Representative Gene DiGirolamo and Senator Jim Brewster that would maximize state revenues by increasing Sunday store locations, improving hours, allow for flexible pricing and allow for more Wine and Spirits stores to be located within or next to grocery stores.

These two positions have not changed.

In regards to privatization, the Governor's position remains the same after he vetoed reckless liquor privatization legislation.

Pittsburgh Post-Gazette, July 2, 2015: "'It makes bad business sense for the Commonwealth and consumers to sell off an asset, especially before maximizing its value,' Mr. Wolf said. 'During consideration of this legislation, it became abundantly clear that this plan would result in higher prices for consumers.'"

After vetoing privatization legislation and stating support for modernization, Governor Wolf gave House Republicans a compromise privatization bill that would allow for private management through a ten to twenty-five year lease of the wholesale and retail operations of the PLCB.

PennLive.com, September 16, 2015: "'We're not just giving this away to some crony of somebody,' said Wolf at a news conference in the Governor's Reception Room where he described the offer he made to legislative leaders. "He said the contract with the private manager would be for a term of between 10 and 25 years and give the manager free rein over the number and location of stores, expand hours to seven days a week from 8 a.m. to 11 p.m., and flexibility in pricing."

And just this Monday, Wolf administration officials made it known again that Wolf was firm in support of his own liquor proposal.

Associated Press, November 9, 2015: "Wolf has stuck by his September counteroffer to hire a private manager to run the system, keeping state ownership, administration officials said. That clashes with the stance of House Republicans, who want the state to end its control of wholesale and retail wine and liquor operations and license private businesses to do it."

What you are hearing from House Republican Leadership is a falsehood from budget negotiations that start with Speaker Mike Turzai and House Majority Leader Dave Reed.

Governor Wolf has agreed to a placeholder financial number for next year's, not this year's, budget, which is upward of $200 million for Fiscal Year 2016-17. This placeholder is for Wolf's modernization and private management lease plan, not anything that comes close to privatization bills discussed by House Republicans for years and years.

House and Senate members should ask Speaker Turzai and Majority Leader Reed what exactly has been agreed to in budget negotiations.

How is the $200 million raised for next year's budget?

What does the Governor think of Speaker Turzai's proposal?

Why are we still discussing an issue during budget negotiations that has no fiscal impact on this year's budget?

The UFCW PA Wine and Spirits Council continues to support Governor Wolf's ideas of modernizing our state Wine and Spirits Stores through current modernization proposals or concepts to lease out private management of the wholesale and retail operations of the PLCB. The Governor continues to support these concepts, not any plan being touted by Speaker Mike Turzai or Majority Leader Dave Reed, and anything reported differently is just not true.

Let's get a real budget done and stop wasting more legislative days on liquor privatization bills that will not become law as a result of these negotiations.

As the budget impasse in Harrisburg drags on, some Republican lawmakers and others insist that privatizing the Pennsylvania Liquor Control Board must be a part of a budget solution and some grand political compromise. Basic math and good business sense dictate otherwise.

Consider, for starters, that the LCB generates significant revenue for this state. In the fiscal year that ended in June, the LCB provided roughly $585 million to taxpayers in taxes, profits, and other transfers, according to the LCB's preliminary figures.

The agency's $2.3 billion in sales is a record and represents a 4 percent increase over the previous year.

Breaking this asset up simply would not create the windfall that some have promised, according to an analysis prepared by Public Financial Management and commissioned by former Gov. Tom Corbett.

]]>Tue, 29 Sep 2015 10:49:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/the-inquirer-privatization-doesnt-add-up
http://www.ufcwpawineandspiritscouncil.com/news/the-inquirer-privatization-doesnt-add-uphttp://www.ufcwpawineandspiritscouncil.com/news/the-inquirer-privatization-doesnt-add-upThe Tribune-Review profiles PLCB wine pro Craig Fallucco who is, “among more than five dozen specialists who sport green aprons and host free tastings at premium wine and spirits shops across Pennsylvania. Most went through training programs sponsored by the LCB before landing one of the posts….”

Gallons of ink and countless gigabytes of data have been consumed by the ongoing debate over the future of one of the commonwealth's most valuable assets - the Pennsylvania Liquor Control Board.That's right: The LCB is a valuable asset whose shareholders include every Pennsylvania taxpayer. Despite the relentless spin by some Republican lawmakers, pundits and editorial writers, the LCB is an extremely successful enterprise that returns significant dividends each year to this commonwealth.

And I do not expect The Morning Call's readers to take my word for it. I represent some 3,200 Pennsylvanians who work in the liquor stores, and, as such, I have a vested interest in this battle. Unlike some of the leading advocates for privatization, I do not try to pretend otherwise.

But The Morning Call's readers can rely on real data based on independent research that our union had nothing to do with. The fact is that the state treasury will take a major loss, taxpayers will be on the hook and prices will increase if the state liquor system is privatized. The general public simply does not support dismantling this asset, and privatization will not lead to a wave of new jobs in our state.

Privatization is a loser on all fronts.

An analysis of privatization by Public Financial Management that was commissioned by former Gov. Tom Corbett found that privatizing the agency would result in at least $1.4 billion in transition costs over five years. PFM also said that the state would have to come up with $408 million in new revenue each year to make privatization fiscally neutral.

This is a national firm hired by Gov. Corbett, an ardent privateer. Yet some continue to insist that the state will actually make money if the system is dismantled.

PFM also found that prices will actually increase in many parts of the state under a private system, especially in rural areas. The report found that, after Iowa privatized, "Price increases were gradual and totaled 7.4 percent above what they would have been if the state had retained its stores."

Consumers in Washington state are paying from 10 percent to 30 percent more for wine and spirits after privatizing in 2012 and even some GOP lawmakers in Harrisburg concede that prices will increase in our state as well.

PFM also found that at least 2,300 employees who work for the PLCB will go on unemployment. Big-box and large grocers, drug stores and small retailers will not hire scores of new employees, PFM found. Instead, they will simply clear some shelf space next to the chips and start selling vodka.

In addition to the PFM study, a quick review of the agency's financial performance makes a compelling case for improving the system that we have in place today. Lawmakers continue to mangle the agency's financials to muddy the debate. For five years now, we've been told that the LCB is losing money. That is not true.

The LCB provides at least $565 million to all taxpayers each year. According to preliminary figures released recently by the LCB, the agency last year generated at least $585 million for taxpayers. Sales last year increased by 4.2 percent over the previous year, to roughly $2.3 billion and sales spiked in July over last year's numbers.

Keep in mind that the LCB pays all of its expenses, including those for the State Police Bureau of Liquor Enforcement, drug and alcohol programs in the state and all employees' costs, including benefits.

Modernizing the LCB makes the most sense for the state, especially given the $1 billion budget deficit that lawmakers and Gov. Tom Wolf are trying to close. It's time to allow for more Sunday stores and Sunday hours. The agency can open more stores inside of or adjacent to grocery stores or beer distributors to improve convenience.

These and other common-sense proposals would help the agency generate at least $185 million in new profits in the first year alone. Profits would grow in the out years, adding to the agency's contribution to all taxpayers.

Facts still matter, even in the midst of a heated political debate. Lawmakers need to focus on real numbers and the data, not the privateer's hype. The LCB is a valuable public asset and it should be maintained as such.

Wendell W. Young IV is president of the United Food and Commercial Workers Union Local 1776.

We file numerous disclosure and tax forms both in Harrisburg and in Washington, D.C., and we welcome this transparency — and your coverage.However, I was disappointed the paper gave every other stakeholder a free pass, beginning with the organization that is most troubled by our reporting — the Commonwealth Foundation.

The foundation has led the charge to dismantle the Liquor Control Board. Yet your staff has not looked at its tax returns or its lobby disclosure reports. (The foundation does not come close to matching my union on disclosing its finances and does not even disclose its donors.)

Similarly, the paper has not bothered to look at any of the other interests in this battle, including the Pennsylvania Chamber of Business and Industry, the National Federation of Independent Business, the Pennsylvania Manufacturers Association, the Pennsylvania Convenience Store Council, the grocery store chains, big box retailers and many others.

Has it ever occurred to any reporter or editor in your newsroom that one of the biggest beneficiaries of privatization would be … the PG? Newspapers would gain millions in new advertising revenue under privatization. Perhaps the paper should review the Pennsylvania NewsMedia Association’s disclosure reports.

I have no problem with scrutiny. I just think the paper should hold all interests, even those that agree with your pro-privatization stance, to the same standard.

Let's all cheer for Gov. Wolf for not signing this totally Republican budget. Included in this budget is the privatization of the liquor stores of Pennsylvania.

Remember these stores provide a steady stream of millions of dollars in tax revenue each and every year and will continue to do so as long as the system is left alone. If these stores are sold off (privatized), yes, there will be a windfall of revenue from the sale of stores and licenses to cover some of the debt these politicians have imposed on us, the residents of this commonwealth.

If the preliminary figures, made public at a House committee meeting Wednesday, hold they would represent another year of record sales for the Liquor Control Board, which oversees 604 liquor stores statewide.

Chairman Tim Holden said sales from the 2014-15 fiscal year reflected a 4.2 percent increase over the previous year, which saw $2.2 billion in revenue. July, the first month of the new fiscal year, saw a 7 percent increase over the prior year, he said.

The Post-Gazette’s latest diatribe on liquor privatization marks a new low in your Ahab-like obsession with this issue (“Wolf vs. Pa.,” July 5).

Gov. Tom Wolf made the right decision in vetoing legislation that would result in raising prices on wine and spirits and jeopardize 5,000 family-sustaining jobs. The governor did his research. The PG? Not so much.

You lead readers to believe the governor stands alone. But the Pennsylvania DUI Association, the Drug and Alcohol Service Providers Organization of Pennsylvania, Mothers Against Drunk Driving and the Commonwealth Prevention Alliance, among many others, opposed this bill.

Last month’s Franklin & Marshall poll found 1 percent of registered voters believe “privatizing the state liquor stores” should be a top priority.

A previous F&M poll found 57 percent of the state’s voters believe the state-owned liquor stores should continue as they are (31 percent) or be modernized (26 percent) than believe they should be sold to private companies (37 percent).

You imply the governor is incorrect in believing prices will increase. You ignore what happened in Iowa, West Virginia and most recently Washington state, where prices have increased dramatically after privatization.

You fail to note the report by Public Financial Management, commissioned by former Gov. Tom Corbett, which found prices would increase in many parts of the state, millions in revenue would be lost and thousands of jobs would be eliminated.It is time to let the obsession go.

]]>Thu, 09 Jul 2015 12:22:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/gov-wolf-has-plenty-of-allies-on-liquor-privatization
http://www.ufcwpawineandspiritscouncil.com/news/gov-wolf-has-plenty-of-allies-on-liquor-privatizationhttp://www.ufcwpawineandspiritscouncil.com/news/gov-wolf-has-plenty-of-allies-on-liquor-privatizationGov. Tom Wolf made the right call in vetoing legislation to dismantle the PLCB and public health experts from around the state agree:

Mothers Against Drunk Driving … “supports Governor Wolf’s decision to veto this legislation as transferring current state alcohol control to private control is counter to MADD’s mission of eliminating drunk driving and preventing underage drinking.”

The Commonwealth Prevention Alliance (CPA) … “supports Governor Wolf’s veto of legislation that would privatize the state liquor system. Part of CPA’s efforts focus on reducing alcohol abuse. As drug and alcohol prevention professionals, our main concern is the effect on public health and safety related to underage drinking, alcohol addiction, and alcohol-related crimes such as driving under the influence.

The Drug and Alcohol Service Providers Organization of Pennsylvania … “thank[s] the Governor for vetoing HB466. Here is why. Pennsylvania has the lowest alcohol-related morbidity in America. That's not an accident.”

The Pennsylvania Driving under the Influence (DUI) Association … “is commending Governor Wolf for his veto of the Privatization of the Commonwealth’s Liquor Stores. “Research has shown that privatization leads to increased availability of alcohol, increased availability leads to increased consumption, increased consumption leads to an increase in alcohol-related problems, such as increased assaults, alcohol-related automobile crashes and deaths.”

]]>Mon, 06 Jul 2015 14:22:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/readers-take-on-the-post-gazettes-push-to-put-4700-pennsylvanians-on-unemployment
http://www.ufcwpawineandspiritscouncil.com/news/readers-take-on-the-post-gazettes-push-to-put-4700-pennsylvanians-on-unemploymenthttp://www.ufcwpawineandspiritscouncil.com/news/readers-take-on-the-post-gazettes-push-to-put-4700-pennsylvanians-on-unemploymentThe UFCW PA Wine and Spirits Council and the 3,500 Pennsylvanians who work in Pennsylvania’s Wine and Spirits stores applaud Governor Tom Wolf’s veto of the reckless legislation to dismantle the PLCB.

“Governor Wolf made the responsible decision. As a businessman, the governor recognized that this legislation made absolutely no sense. It was a sham bill driven by narrow special interests,” said UFCW Local 1776 President Wendell W. Young. “It’s time to focus on modernizing this asset and moving our Commonwealth forward. It’s time to stop these pointless political games.”

Privatization would only increase our structural budget deficit, by eliminating valuable revenue the PLCB generates each and every year for the taxpayers of Pennsylvania. The PLCB last year contributed more than $565 million to the state treasury.

A study by Public Financial Management, Inc. (PFM), commissioned by former Gov. Tom Corbett, found that privatization would result in at least $1.4 billion in transition costs over five years. PFM also found that the state would have to identify $408 million in new revenue annually to make privatization fiscally neutral.

“This is just bad public policy and even worse math,” said UFCW Local 23 President Anthony M. Helfer. “This veto was absolutely necessary and in the best interests of every Pennsylvania taxpayer.”

Modernization of the Wine and Spirits stores will help generate an additional $185 million in new revenue to the state. Modernization proposals include opening more stores on Sunday, increasing store hours, moving stores inside or next to grocery stores and provide for better pricing for Pennsylvania consumers.

Young also commended Gov. Wolf for vetoing the GOP budget plan earlier this week and urged him to veto the punitive pension legislation that was crafted and backed by GOP leaders.

“The GOP budget plan that was sent to the Governor does not address the concerns of Pennsylvanians,” said Young. “Voters want education funding, property tax relief and a reasonable tax on the Marcellus Shale industry. The GOP budget fails to address these important issues, instead focuses on an issue one percent of Pennsylvanians care about.”

Governor Wolf’s budget proposal is a comprehensive plan that benefits all Pennsylvanians and will work to move our state forward. Governor Wolf’s plan meets the expectations of what the voters asked him and elected him to do.

]]>Thu, 02 Jul 2015 16:15:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/wine-and-spirits-council-applauds-wolf-on-privatization-veto
http://www.ufcwpawineandspiritscouncil.com/news/wine-and-spirits-council-applauds-wolf-on-privatization-vetohttp://www.ufcwpawineandspiritscouncil.com/news/wine-and-spirits-council-applauds-wolf-on-privatization-vetoLegislation to dismantle the PLCB will cost Pennsylvania consumers and every single taxpayer. And you don't have to take our word for it.

Asked Sunday whether privatization would lead to higher retail prices, Sen. Chuck McIlhinney, Chairman of the Senate Law and Justice Committee, said Sunday...

"Just like they did in the other states. In Washington State when they divested, they are seeing a couple of years later they have the highest prices for liquor in the country, and getting a lot of complaints about it."

And Sen. McIlhinney put to rest one of the privateer's favorite myths …

"The liquor system gives us money every year for our budget. Let's be frank, we make money selling liquor. So it is a positive revenue asset for us. The struggle is if you're going to maintain that revenue by divesting and having a new person come in and have them make profit on it it's going to have an impact on the liquor prices."

The PLCB last year returned more than $565 million in taxes, profits and other transfers to taxpayers. It's time to modernize this asset so that it can do even more for all Pennsylvanians.

]]>Tue, 30 Jun 2015 14:09:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/harrisburgs-worst-kept-secret-wine--spirits-prices-to-skyrocket
http://www.ufcwpawineandspiritscouncil.com/news/harrisburgs-worst-kept-secret-wine--spirits-prices-to-skyrockethttp://www.ufcwpawineandspiritscouncil.com/news/harrisburgs-worst-kept-secret-wine--spirits-prices-to-skyrocketWendell W. Young IV, President of the UFCW PA Wine and Spirits Council, today urged Gov. Tom Wolf to veto legislation that would put thousands of Pennsylvanians out of work; jeopardize $565 million in revenue for the state; and result in dramatic price increases for wine and spirits.

"The games have gone on long enough. It's time for Republicans to put Pennsylvania families first. It's time to help protect family-sustaining jobs and help improve an incredibly valuable asset," said Young. "Our members urge the governor to veto this bill and reject the cheap political theater."

Young noted that Sen. Chuck McIlhinney confirmed this week what the experts have known for some time now: that prices for both wine and spirits will increase as a result of this bill. McIlhinney confirmed that Pennsylvania will have the same experience that Washington State has had in recent years.

"In Washington State when they divested, they are seeing a couple of years later they have the highest prices for liquor in the country, and getting a lot of complaints about it," McIlhinney said on a Harrisburg area television show.'

Young noted that the experts have also made it clear that privatization would be a financial catastrophe for taxpayers. Public Financial Management, Inc. (PFM), found that privatizing the PLCB would result in at least $1.4 billion in transition costs over five years. PFM also found that lawmakers would have to come up with $408 million in new revenue annually to make privatization fiscally neutral.

"This firm was hired by Gov. Corbett to analyze what privatization would do. These are the experts and these are their numbers," Young said. "It is pure fantasy to suggest that this plan would actually generate new revenue for the state."

Young added, "Our members are urging Gov. Wolf to veto this bill. We are urging him to veto the reckless state budget bill and the punitive pension legislation that GOP majorities have sent to his desk. Pennsylvanians deserve better than this."

]]>Tue, 30 Jun 2015 14:08:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/ufcw-urges-a-veto-of-reckless-privatization-bill
http://www.ufcwpawineandspiritscouncil.com/news/ufcw-urges-a-veto-of-reckless-privatization-billhttp://www.ufcwpawineandspiritscouncil.com/news/ufcw-urges-a-veto-of-reckless-privatization-billEvery professional peer-reviewed study demonstrates that a private corporate takeover of the sale of wine and spirits leads to increased negative impacts on society, including spikes in under-age drinking, overall consumption, deaths as a result of drunk drivers, crime, property damage, gang violence, suicides, excessive consumption, violence in relationships, college student drinking and other factors.

We encourage you to review this selection of independent research: Read the Report

Critics of the state’s wine and spirits shops like to play the free market card to justify their relentless campaign to dismantle a valuable publicly-owned asset -- and put thousands of Pennsylvanians on the unemployment line in the bargain.

But their "free" market comes with a massive price tag for taxpayers.

One proposal would provide restaurants and bars awarded a license to sell wine-to-go with an expanded discount on the wine they purchase from the PA Liquor Control Board (PLCB). These establishments already receive a discount of 10 percent on wine and spirits that they purchase.

Now, some of these privateers are pushing to double that break, which would cost $40 million to $50 million a year. These discounts would cut into the more than $550 million the PLCB provides state taxpayers each year in profits, taxes and other transfers.

A second proposal provides a taxpayer-funded bailout for beer distributors. Under this plan, the state, i.e. taxpayers, would be forced to purchase back licenses from beer distributors who decide they want to sell. That money, again, would ultimately cut into the revenue that the PLCB provides the state each year.

Lawmakers need to focus on improving this asset by supporting Rep. Gene DiGirolamo’s legislation that would, among other things, expand Sunday stores and Sunday hours, allow the PLCB to open more stores inside of or adjacent to grocery stores and provide for direct shipment of wine to homes.

This proposal would generate $185 million a year in new revenue for the state and improve customer convenience. It’s time to modernize the PLCB for consumers and all taxpayers.

]]>Sun, 20 Apr 2014 15:17:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/letter-to-the-editor-dont-stiff-pa-taxpayers-for-these-two-bad-free-market-ideas
http://www.ufcwpawineandspiritscouncil.com/news/letter-to-the-editor-dont-stiff-pa-taxpayers-for-these-two-bad-free-market-ideashttp://www.ufcwpawineandspiritscouncil.com/news/letter-to-the-editor-dont-stiff-pa-taxpayers-for-these-two-bad-free-market-ideasWendell W. Young, IV, Chairman of the United Food and Commercial Workers of PA Wine & Spirits Council and President of UFCW Local 1776, issued the following statement today:

"This has been a long and spirited debate and we’re obviously happy for the 3,500 UFCW members who work in the Wine and Spirits shops. We look forward to continue working with members of both parties on ways that we can continue to improve the Wine and Spirits shops and the Pennsylvania Liquor Control Board (PLCB) overall.”

Young noted that throughout the debate Republicans and Democrats expressed support for proposals to modernize the PLCB, many of which his members have long supported.

“There are common sense measures that the Commonwealth can implement to improve convenience for our customers and increase revenue for the state’s general fund, which makes sense for all taxpayers,” Young said. “I think it’s fair to say that lawmakers and Pennsylvanians learned an awful lot about this very valuable asset and, again, we all recognize that we can make it better and stronger.”

Young cited the PLCB’s performance this fiscal year, which ended last night at midnight.

“The results have been phenomenal. This year alone, the LCB will have returned more than $700 million in profit, taxes and other transfers. This revenue helps to fund vital programs and services,” Young said. “It’s time that all parties work together to strengthen and modernize this unique and valuable public asset.”

Modernization proposals include expanded hours and locations on Sundays, direct shipment of wine to consumers’ homes, lottery sales in the stores and changes to personnel, procurement and pricing policies.

A majority of Pennsylvania voters now oppose privatization, according to the latest independent poll by F&M, which found 57 percent of the state's registered voters believe the state-owned liquor stores should continue as they are (31 percent) or be modernized (26 percent). Only 37 percent of Pennsylvania voters support privatization.

The LCB is a valuable publicly-owned asset that is on pace to return more than $700 million in taxes, profit and other transfers to the state treasury in this fiscal year. Looking ahead, the LCB will soon deliver more than $1 billion each year.

By enacting just a few common sense proposals that would allow the LCB to operate more efficiently; improve consumer convenience; and deliver an even greater return to every taxpayer. Modernization proposals include:

Flexible Pricing: would allow for market-based pricing.

Sunday Sales: Increase the number of Sunday stores and expand Sunday hours

Direct wine shipment: Consumers want the convenience of direct shipment of wine to their homes.

Changes in Personnel: elimination of Civil Service for new hires, creating efficiencies, cost savings, better service, and increased profitability.

Changes in Procurement Code: would give the PLCB the sole discretion to purchase all goods and services.

At the urging of the Commonwealth Foundation, several media outlets have recently contacted our offices regarding an ad that has been airing for weeks.

We’d like to thank the Commonwealth Foundation, their mystery donors and the national PR firm they’ve engaged, for sharing this ad with reporters. Our ad shares an important message and we encourage all stakeholders to listen to the experts.

MADD, SADD, the PA DUI Association, and the U.S. Centers for Disease Control, among dozens of other groups and experts, oppose privatization. Every peer-reviewed study demonstrates that privatization leads to spikes in under-age drinking, overall consumption, deaths as a result of drunk drivers, crime, property damage, and other factors.

As Stephen Erni, executive director of the Pennsylvania DUI Association, told ABC 27 last week, “When we are comparing apples to apples, Pennsylvania is by far better than any of the privatized states in the whole United States.” We encourage all lawmakers and reporters to study this issue carefully:

The CDC states: “Based on its charge to identify effective disease and injury prevention measures, the Task Force on Community Preventive Services recommends against the further privatization of alcohol sales in settings with current government control of retail sales, based on strong evidence that privatization results in increased per capita alcohol consumption, a well established proxy for excessive consumption.” http://www.thecommunityguide.org/alcohol/RRprivatization.html

Pennsylvania has the lowest death rate related to alcohol disease in the nation.

Peer-reviewed research states increases in alcohol outlets is directly correlated with increases in alcohol-related fatalities and accidents. These findings have been published in academic journals such as Accident Ananlysis & Prevention. The Journal of Adolescent Health and Australian Journal of Public Health.

Most recently, MADD stated that, "… policies or legislation transferring state alcohol control to private control are counter to MADD's mission of eliminating drunk driving and preventing underage drinking."

“The most critical reforms of the General Assembly include: Lobbyist Disclosure: Pennsylvanians should be able to know who, what, when, where, and how lobbyists are attempting to shape public policy in Harrisburg. Lobbyist disclosure laws crafted by lobbyists should be rejected as unacceptable. There are 49 states that have laws from which we can pick and choose the best practices.”

Now, the go-to lobbyists for privateers refuse to disclose who is funding their stealth liquor campaign – one that will cost PA taxpayers hundreds of millions of dollars.

Is big liquor paying the bills? Is David Trone writing the checks so that he can come back into PA?

We believe that lawmakers will see through this hypocrisy and rely on facts. Proposals to dismantle a valuable public asset; put more than 5,000 Pennsylvanians out of work; and jeopardize more than $700 million in taxes, profit and other transfers makes no sense.

Tell the Commonwealth Foundation to man up and stop hiding behind the tax code. You can call The Foundation at 717.671-1901.

These organizations are not alone in where they stand on the issue of privatization. A majority of Pennsylvania voters now oppose privatization, according to independent polling. The F&M poll showed privatization of liquor ranked 10th out of 11 of the list of issues Pennsylvanians care about.

The poll also found that 57 percent of the state's registered voters believe the state-owned liquor stores should continue as they are (31 percent) or be modernized (26 percent), while only 37 percent think they should be turned over to the private sector.

]]>Wed, 19 Jun 2013 22:47:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/dozens-of-groups-line-up-to-oppose-privatization-schemes
http://www.ufcwpawineandspiritscouncil.com/news/dozens-of-groups-line-up-to-oppose-privatization-schemeshttp://www.ufcwpawineandspiritscouncil.com/news/dozens-of-groups-line-up-to-oppose-privatization-schemesSen. Chuck McIlhinney's proposal to dismantle the LCB and create up to 14,000 retail outlets for alcohol sales would cost Pennsylvania taxpayers hundreds of millions of dollars in lost revenue, Wendell W. Young IV, President of the UFCW PA Wine & Spirits Council, said today.

"Sen. McIlhinney held three Committee hearings but he never asked one expert or one witness to look at his math. He has kept this under wraps until the closing days of this budget season because he knows they just can't stand up to scrutiny," Young. "His plan would destroy a very valuable public asset."

"No matter how the senator dresses this plan up, it would put 5,000 LCB employees out of work, hundreds of local beer distributors out of business and the 10,000 Pennsylvanians they employ out of work as well," Young said.

Young urged senators to reject Sen. McIlhinney's plan and, instead, support common sense modernization proposals that would allow the LCB to generate significant levels of new revenue and enhance customer convenience.

"Rather than make up assumptions and threw some numbers against the wall, it's time that members of the state senate followed their constituents and supported efforts to take the handcuffs off of the LCB to improve operations," said Young. "We're urging all Senators – in both parties – to reject this proposal. Pennsylvanians expect and deserve better."

As the Legislature readies for a "blitzkrieg on liquor sales", as one media outlet put it, lawmakers need to study very carefully the case that Gov. Tom Corbett, House Majority Leader Mike Turzai, R-Allegheny, and the privateers have made for breaking apart the Pennsylvania Liquor Control Board.

Because they haven't made one.

They have the rhetoric and their wild claims about the wonders of privatization. But facts? Not so much. Gov. Corbett ignores his own consultants, and dozens of groups opposed to privatization, including Mothers Against Drunk Driving and Students Against Drunk Driving, to name just two.

They claim that the state will make a mint by selling off licenses; that prices will plummet while convenience and selection will blossom if Walmart, for instance, stocks a wine aisle in between sporting goods and house wares.

It isn’t true.

Consider just five questions that lawmakers must address before putting 5,000 PLCB employees and hundreds of small businesses out of work:

Why are we even having this debate? House Leader Mike Turzai promised a $2 billion to $6 billion windfall for the liquor licenses. Then Gov. Corbett promised $1 billion.The House legislation calls for $800 million. Taxpayers don’t know what the price tag of the Senate bill because the author, Sen. Chuck McIlhinney, has yet to provide any details.

But we do know that the LCB will provide a record $700 million in total transfers to the treasury this year, including more than $100 million in profit. We also know that Corbett’s hand-picked consultants at Public Financial Management (PFM) found that privatization will cost the state $1.4 billion in transition costs. Privatization in one fell swoop or one piece at a time will cost taxpayers hundreds of millions of dollar. That’s just a fact.

Where are the jobs? They keep promising jobs. Lt. Gov. Jim Cawley played the jobs card earlier this month before the Senate Law & Justice Committee. But PFM says that more than 2,300 LCB employees will land on unemployment and, because existing businesses will grab the bulk of any new licenses, very few new jobs will be created.

According to PFM, ‘...minimal workforce will be hired…’ by existing retailers while the big chains ‘have sufficient existing employees to manage the registers will tend to reallocate store space.” The same goes for small retailers, drug and convenience stores. Since the LCB ‘currently contracts out the majority of wholesale operations, the number of net jobs created are likely to be minimal.’

There is no nice way to put this: the privateers are just lying to Pennsylvanians when they say they’re going to create jobs.

What about price and convenience? Privatization does not mean lower prices or better selection. After Iowa privatized, “Price increases were gradual and totaled 7.4 percent above what they would have been if the State had retained its stores,” says PFM.

One year since privatization in Washington State, consumers are still experiencing much higher prices in private retailers then what they saw in state liquor stores. The average PA store stocks 3,000 to 5,000 items; the smallest stores stock at least 1,000 items. Costco, the leading proponent of privatization in Washington State, stocks only 140 wines and 32 spirits on its shelves. Prices will spike and selection will suffer in rural areas especially, according to PFM.

What do Pennsylvanians want? A majority of Pennsylvania voters now oppose privatization, according to the latest independent poll by Franklin & Marshall, which found 57 percent of the state's registered voters believe the state-owned liquor stores should continue as they are (31 percent) or be modernized (26 percent). The same poll found that privatization of liquor ranked 10th out of 11 of the list of issues Pennsylvanians care about, well below transportation funding, a critical issue for all Pennsylvanians.

Pennsylvanians want more convenience and so do the 5,000 men and women who work at the PLCB. It’s time to modernize liquor sales to give the consumers what they want.

Why are we even having this debate at all? The big chains win but 5,000 Pennsylvania working families lose. Consumers lose. Every taxpayer loses. This week, however, we learned of another potential winner: Gov. Corbett’s reelection campaign, which this week sent out an e-mail blast soliciting cash for the liquor fight. They’re asking for donations starting at $10.

Chairman McIlhinney, Sen. Ferlo and members of the Committee, thank you for inviting me to testify on behalf of the 3,500 men and women who work for the LCB whom I am proud to represent. Beyond inviting me to appear, I want to thank you for convening this series of hearings. There is no doubt in my mind that members of this Committee and your Senate colleagues have learned a great deal about the true impact that privatization would have on your constituents and our Commonwealth as a whole. One witness after another has appeared before this Committee and provided members with accurate information; real facts backed up by data and research that make it clear: privatization is a bad deal for Pennsylvania.

]]>Wed, 01 May 2013 13:26:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/lancaster-based-group-opposes-corbett-privatization-plan
http://www.ufcwpawineandspiritscouncil.com/news/lancaster-based-group-opposes-corbett-privatization-planhttp://www.ufcwpawineandspiritscouncil.com/news/lancaster-based-group-opposes-corbett-privatization-planPrivatizing state liquor stores under a House bill would drain police resources and result in higher crime rates, the president of the Pennsylvania Fraternal Order of Police told a Senate panel on Tuesday.

Read the full article]]>Wed, 01 May 2013 13:24:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/crime-would-spike-without-state-control-of-liquor-sales
http://www.ufcwpawineandspiritscouncil.com/news/crime-would-spike-without-state-control-of-liquor-saleshttp://www.ufcwpawineandspiritscouncil.com/news/crime-would-spike-without-state-control-of-liquor-salesFirst came the cops. Then came the drug-and-alcohol counselors. Next up was the moms. And finally, the kids. All of them told a state Senate committee Tuesday they oppose a plan to privatize wine and spirits sales and make beer more readily available under a House-approved bill supported by Gov. Tom Corbett.

]]>Tue, 30 Apr 2013 13:22:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/corbett-privatization-plan-is-dead
http://www.ufcwpawineandspiritscouncil.com/news/corbett-privatization-plan-is-deadhttp://www.ufcwpawineandspiritscouncil.com/news/corbett-privatization-plan-is-deadWendell W. Young IV, President of UFCW Local 1776, urged the Senate to reject legislation to dismantle the LCB that was strong-armed through the House today and instead support bipartisan legislation designed to modernize the agency.

“There’s no good reason to put 3,500 UFCW members on the unemployment line. There’s no good reason to put 1,100 Main Street beer distributors out of business and jeopardize the livelihoods of the 12,000 men and women they employ – other than to make Tom Corbett’s corporate cronies happy,” said Young, who also serves as President of the UFCW PA Wine and Spirits Council.

“Gov. Corbett might get another helicopter ride or pleasure cruise on a yacht that his cronies will pay for. But thousands of working men and women will get nothing more than a pink slip.”

The House’s passage of House Bill 790 is not the end of this battle, Young said. He noted that House members ignored dozens of public health and safety groups opposed to privatization with their reckless vote, including the Centers for Disease Control, MADD, the Police Chiefs Association, and the Drug and Alcohol Service Providers Organization of Pennsylvania, among others.

“It’s ironic that Tom Corbett got elected by promising to reform Harrisburg and create jobs. Instead, he buys off votes with projects and who knows what else and he strong arms lawmakers to put 17,000 people out of work,” Young said. “Our unemployment rate is going up yet the national rate is dropping. This bill will make a bad situation worse.”

“The fight is not over yet. Common sense legislation has already been introduced in the Senate, as it has been in the past. These bills make sense for consumers – not special interests,” Young said.

Young urged the Senate to convene public hearings on modernization bills.

“We are urging senators to take a hard look at all of the bills to make sure that consumers’ expectations are met,” said Young. “I have no doubt that if senators keep the consumers’ and taxpayers’ interests first and foremost as they begin to debate these bills, common sense will prevail.”

]]>Tue, 12 Mar 2013 10:11:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/a-look-at-success-of-tableleaf
http://www.ufcwpawineandspiritscouncil.com/news/a-look-at-success-of-tableleafhttp://www.ufcwpawineandspiritscouncil.com/news/a-look-at-success-of-tableleafRead the complete March 6 testimony by Wendell Young before the House Democratic Policy Committee, Erie, PA.]]>Thu, 07 Mar 2013 22:18:00 ESThttp://www.ufcwpawineandspiritscouncil.com/news/wendell-young-testimony-on-plcb-privatization
http://www.ufcwpawineandspiritscouncil.com/news/wendell-young-testimony-on-plcb-privatizationhttp://www.ufcwpawineandspiritscouncil.com/news/wendell-young-testimony-on-plcb-privatizationProving once again that his administration just cannot be trusted, Gov. Tom Corbett’s Budget Secretary Charles Zogby today ignored the cold hard fact that the PA Wine & Spirits shops so far this year have a net income of just under 15 percent.

Instead of relying on facts, Zogby told lawmakers that, "If you take away the wholesale profits, every store is a failing business."

The PLCB in testimony this week, explained to lawmakers and all taxpayers that the stores are, in fact, earning profits. The net income for retail operations for the past two plus years, according to the agency are (net of sales tax):

FY 10-11 = 10.0%

FY 11-12 = 13.3%

FY 12-13 thru 12/31/12 = 14.8%

"You either don’t understand basic math or don’t want to tell the truth if you think these numbers mean the stores are losing money," said Wendell W Young IV, President, UFCW Local 1776, and Chairman of the UFCW PA Wine & Spirits Council. "Once again, this governor and his administration are making it clear that they just cannot be trusted."

Young noted that the PLCB has generated record sales and record profits in each of the past two years. The agency generates more than $500 million a year in profits and taxes for the state each year.

"This is worse math than they used to cook up their scheme to giveaway our lottery to a foreign corporation," Young said. "Again, we’re urging lawmakers to convene public hearings around the state on the governor’s reckless scheme to dismantle this valuable public asset. The more Pennsylvanians learn about the facts, the more they recognize that Tom Corbett and his team do not have any idea what they’re talking about."

Wendell W. Young, IV issued the following statement today regarding the introduction of House Bill 790, Gov. Corbett’s misguided scheme to jeopardize as many as 5,000 family-sustaining jobs and put a retail alcohol outlet on every street corner:

“This is bad public policy that reflects a Governor who is completely out of touch with the very citizens he was elected to represent. This bill, introduced by Mike Turzai, would cost the state thousands of jobs; would jeopardize more than 1,100 small businesses and their employees; and would create as many as 30,000 retail outlets for the sale of beer, wine or spirits on every corner in our neighborhoods. It’s absurd.”

Young said that Gov. Corbett’s public comments on the legislation make it clear that he has decided to ignore his own research in an effort to mislead Pennsylvanians.

“The Governor says that our members will have a smooth transition, and Mike Turzai says that jobs won’t be lost. But the Governor’s Public Financial Management study shows that the equivalent of 2,000 PLCB workers will be put on the unemployment line,” Young said. “The Governor says the state will realize a $1 billion windfall, but PFM told him that the transition costs will total at least $1.4 billion.”

Young also urged lawmakers not to fall for Turzai’s bait and switch tactics and be prepared to reject all proposals that would dismantle the PLCB.

“Mike Turzai made it clear today that he wants to tear apart this public asset anyway he can. He is going to try and sneak a bill through the committee before the public can have any say, before lawmakers can have any input,” Young said. “This is the same game that Tom Corbett played with our lottery and it won’t work.”

Young urged lawmakers to convene public hearings to study the on-going privatization debacle in Washington State and to review carefully the PFM report.

“Mike Turzai and Tom Corbett can ignore the facts if they want to, but privatization doesn’t work. Prices will go up. Selection and convenience in rural areas, especially will suffer because that is exactly what’s happened in every other state that has gone down this path,” Young said. “And the state will lose money – because that’s what always happens under privatization.”

UFCW Local 1776 and Local 23 represent 3,500 employees in the PA Wine & Spirits shops. More than 40,000 UFCW members live in Pennsylvania.

]]>Tue, 05 Mar 2013 17:59:00 ESThttp://www.ufcwpawineandspiritscouncil.com/news/gov-corbett-cannot-be-trusted-on-privatization
http://www.ufcwpawineandspiritscouncil.com/news/gov-corbett-cannot-be-trusted-on-privatizationhttp://www.ufcwpawineandspiritscouncil.com/news/gov-corbett-cannot-be-trusted-on-privatizationThe Pennsylvania Liquor Control Board stressed it can generate more income for the state if the agency is permitted to move ahead with modernization efforts.

"Our purpose is to provide more income for the Commonwealth," said board member Robert S. Marcus this morning at a Senate Appropriations Committee budget hearing.

If proposed initiative such as expanded store hours and flexibility with pricing are passed by the Legislature, the agency could potentially double its profits, Marcus added.

]]>Mon, 25 Feb 2013 15:28:00 ESThttp://www.ufcwpawineandspiritscouncil.com/news/plcb-leaders-make-case-for-modernization
http://www.ufcwpawineandspiritscouncil.com/news/plcb-leaders-make-case-for-modernizationhttp://www.ufcwpawineandspiritscouncil.com/news/plcb-leaders-make-case-for-modernizationTo suggest that any lawmaker would lose an election for blocking Gov. Tom Corbett's plan to lay off several thousand employees who work for the Pennsylvania Wine and Spirits shops so the PG can sell more ads is absurd.

Equally absurd is the notion that any lawmaker would lose an election for blocking the governor's plan to put 1,800 small-business beer distributors out of business and their 10,000 employees out of work.

]]>Mon, 25 Feb 2013 14:33:00 ESThttp://www.ufcwpawineandspiritscouncil.com/news/dont-trade-jobs-so-newspapers-can-make-more-money
http://www.ufcwpawineandspiritscouncil.com/news/dont-trade-jobs-so-newspapers-can-make-more-moneyhttp://www.ufcwpawineandspiritscouncil.com/news/dont-trade-jobs-so-newspapers-can-make-more-moneyIn wake of Gov. Corbett's failed midnight raid on the lottery, lawmakers should focus their energies on improving valuable public assets that deliver for all Pennsylvanians, including the PA Wine & Spirits Shops and the lottery, said Wendell W. Young IV, Chair of the United Food and Commercial Workers of PA Wine & Spirits Council.

"The citizens of our Commonwealth own some valuable public assets that benefit all Pennsylvanians, and it's time to focus on improving the lottery and modernizing the PA Wine & Spirits shops. Taxpayers expect and deserve more than political games and ideology," Young said. "Privatization of these assets is nothing but a giveaway for Gov. Corbett's corporate friends."

Young, President of UFCW Local 1776, added, "One of the problems with Corbett's lottery scheme was that it was done in the dark without public hearings. We call on the House Liquor Control Committee and the Senate Law and Justice Committee to hold hearings across our Commonwealth before acting on any legislation."

Young noted that the lottery could generate nearly $800 million more in revenue in the next six years under current management by public employees. AFSCME Council 13 has provided the Corbett administration with a blueprint for expanding the lottery that could be implemented immediately.

Similarly, lawmakers in both parties support a series of common-sense proposals to modernize the PA Wine & Spirits shops. Combined, these proposals could generate at least $75 million to $100 million more in annual state revenue. These proposals include expanded Sunday sales; direct shipment of wine to consumers' homes; allowing the sale of lottery tickets in the stores; and opening more stores.

"If you look at the historical growth of the contribution to the state, the total return to the taxpayers will be $1 billion a year within 10 years with these changes. It makes no sense to walk away from that type of investment for a one-time payoff as Gov. Corbett proposes," Young said.

Young urged lawmakers to remember three key facts as they consider the future of the PA Wine & Spirits shops:

Pennsylvania ranks among the top of all states in terms of revenue generated per gallon of wine and spirits sold.

Pennsylvania ranks among the lowest of all states in per-capita consumption of wine and spirits.

Pennsylvania ranks the absolute lowest among all 50 states and the District of Columbia in the rate of deaths due to alcohol-related diseases.

"The lottery pumps $1 billion into life-saving programs for our seniors, but we know it can do more. Our shops generate more than $500 million in taxes and profit for the state's general fund and, again, we know it can do more," Young said. "This is a no-brainer. There's a reason why the U.S. Centers for Disease Control has found that privatization of retail alcohol sales is bad public policy."

He added: "Our state treasury is stronger because of our Wine & Spirits shops. Our communities are stronger, as well. We have an opportunity to work together to improve both of these assets, and it's time for Gov. Corbett to put right-wing ideology aside and work with lawmakers for the benefit of all Pennsylvanians."

]]>Mon, 18 Feb 2013 11:04:00 ESThttp://www.ufcwpawineandspiritscouncil.com/news/young-urges-corbett-to-strengthening-state-assets
http://www.ufcwpawineandspiritscouncil.com/news/young-urges-corbett-to-strengthening-state-assetshttp://www.ufcwpawineandspiritscouncil.com/news/young-urges-corbett-to-strengthening-state-assetsDespite a recent all-out, statewide media blitz designed to bolster horrible poll numbers at the expense of 5,000 Pennsylvania working families, a new statewide poll shows that Pennsylvania’s Wine & Spirits shops are far more popular among voters than Gov. Corbett.

“It’s obvious, as Pennsylvanians learn more about privatization, the less they like it. And the more voters get to know Tom Corbett, the less they like him,” said Wendell W. Young, IV, President of United Food and Commercial Workers Local 1776. “Gov. Corbett wants to put 5,000 Wine and Spirits employees out of work. He wants to shut down 1,100 beer distributors and jeopardize the 11,000 jobs they provide so big box stores can cash in. It makes no sense and, again, voters get it.”

According to the Franklin & Marshall poll, privatization of the Pennsylvania Liquor Control Board earned “moderate support” with only 53 percent of those surveyed rating it favorable. The poll shows that, “Governor Corbett’s job approval ratings are the lowest of his tenure with only one in four (26%) registered voters believing he is doing an “excellent” or “good” job,” according to F&M.

This poll reflects a steady loss of support for reckless privatization schemes that have been introduced in recent years. A review of surveys taken by Quinnipiac, Muhlenberg and F&M show a steep drop in support among voters. In addition, a survey conducted by Nielsen Ratings shows strong PLCB customer satisfaction.

“Despite the governor’s spin and the blind support of every newspaper in the state, the Pennsylvanians who actually shop in the wine and spirits shops are overwhelming happy with the selection, convenience and prices they pay,” Young said. “The numbers are in the 70 percent range. Tom Corbett, on the other hand, can’t get to within shouting distance of 50 percent.”

Young said that the UFCW will continue working to modernize the PLCB to deliver greater convenience to customers and more revenue to taxpayers. These proposals include increased Sunday hours; direct shipment of wine to homes; greater flexibility in pricing and procurement practices and more stores.

“The PLCB provides 5,000 jobs and nearly $600 million a year in taxes and profits to the state treasury. To throw all that away and to kill 1,100 locally-owned businesses is just a bad idea,” Young said. “It’s time to pass modernization legislation and get on to the serious challenges our state confronts – such as adequate funding for public schools and creating jobs.”

"The speech doesn't change a thing. This governor wants to put 5,000 PLCB employees - including 3,500 of our members – out of work. He wants to shut down 1,100 family owned distributors and jeopardize the 11,000 Pennsylvanians these businesses employ, all so he can boost his horrible poll numbers," Young said.

Young said that UFCW's members would also work with lawmakers to reject the governor's so-called pension 'solution' does not address the debt challenge and punishes hard-working Pennsylvanians.

"Our members as well as teachers and nurses across the state have kept their promise and paid their fair share every single paycheck. Now, rather than step up and lead, the governor wants to break the promise and renege on the bargain that our members have honored," Young said. "It's disgraceful."

Looking ahead, UFCW will continue to support modernization proposals, including expanded Sunday hours, adding more stores, allowing for the direct shipment of wine to consumers' homes, and greater flexibility for in procurement and personnel.

"These proposals have bipartisan support in both the House and the Senate and with good reason," Young said. "The bottom line is to improve customer convenience and generate more revenue."

Young noted that the PLCB generates almost $600 million annually for the Commonwealth in taxes and profits. The various modernization proposals would generate at least $75 million more annually for the state. Young reiterated his request to debate the governor in a series of town halls to be convened around the state.

"Once Pennsylvanians understand what the privateers will do to this state we're confident that lawmakers will reject the governor's cynical ploy of pitting 5,000 Pennsylvanians against the needs of our school children" Young said. "We welcome an open and honest debate."

PUP believes that good jobs are a critical need for Pennsylvania residents and the PLCB jobs provide family sustaining employment for thousands of working people in the state.

“Governor Corbett wants to be the jobs Governor and guarantee of job for every Pennsylvanian,” said John Dodds, PUP Director. “However, laying off thousands of LCB workers goes in the wrong direction. Seeing these people replaced with low wage- no benefit workers will harm our economy.”

Pennsylvania has yet to emerge from the Great Recession and the state unemployment rate has risen above the national average for the past several months after standing below the national average through most of the recession. PA has 517,000 unemployed in December or 7.9% of the population.

“The governor’s plan to create as many as 20,000 to 30,000 retail outlets for beer, wine and spirits jeopardizes the public health and safety, especially in urban areas such as Philadelphia,” Dodds said. “We’ve seen so many times how a single nuisance bar can harm an entire neighborhood and now we’re facing the possibility of having beer, wine and liquor stores all over our urban areas.”

PUP is a membership organization of low-wage workers and the unemployed that provides services to laid of Pennsylvanians and organizes the poor and unemployed to work for economic justice.

For more information contact John Dodds, 215-557-0822 ext. 102

]]>Fri, 01 Feb 2013 15:24:00 ESThttp://www.ufcwpawineandspiritscouncil.com/news/philly-unemployment-project-calls-for-legislature-to-stop-the-closing
http://www.ufcwpawineandspiritscouncil.com/news/philly-unemployment-project-calls-for-legislature-to-stop-the-closinghttp://www.ufcwpawineandspiritscouncil.com/news/philly-unemployment-project-calls-for-legislature-to-stop-the-closingGov. Corbett’s plan to dramatically increase the number of retail liquor, beer and wine outlets in the state would jeopardize public health and should be rejected by lawmakers, according to the Pennsylvania Association of Staff Nurses and Allied Professionals (PASNAP).

“Our nurses are on the front lines every day, dealing with accidents and crimes that all too often have been fueled by alcohol,” said Patricia Eakin, a fulltime ER nurse in Philadelphia and statewide President of the union. “Our state does not need more liquor stores and we do not need to start selling beer in every corner store. This is bad public policy.”

Eakin cited the Centers for Disease Control‘s recommendation against the further privatization of the retail sale of alcohol as reason enough for lawmakers to reject Gov. Corbett’s proposal.

According to the task force, “the maintenance of government control of off-premises sale of alcoholic beverages is one of many effective strategies to prevent or reduce excessive consumption which is one of the leading causes of preventable death and disability.”

“Our members will be working with other professionals in the public health sector who recognize that Pennsylvania does not need to go down this reckless path. Studies in other states and countries echo the findings of the CDC – privatization just does not work,” said Eakin.

]]>Wed, 30 Jan 2013 15:27:00 ESThttp://www.ufcwpawineandspiritscouncil.com/news/pennsylvania-nurses-oppose-gov-corbetts-privatization-push
http://www.ufcwpawineandspiritscouncil.com/news/pennsylvania-nurses-oppose-gov-corbetts-privatization-pushhttp://www.ufcwpawineandspiritscouncil.com/news/pennsylvania-nurses-oppose-gov-corbetts-privatization-pushThe Pennsylvania Interfaith Impact Network (PIIN) is urging people of faith from throughout Southwestern Pennsylvania and across the Commonwealth to oppose Gov. Corbett's proposal to dismantle the PA Liquor Control Board (PLCB.)

"This risky scheme jeopardizes 5,000 family-sustaining jobs that the PLCB provides for our friends and neighbors across the state. And it jeopardizes public health and safety in every community in the state," said Lois Campbell, Executive Director of PIIN.

"Pennsylvanians want our leaders to tackle the serious issues that our Commonwealth and nation are confronting. Putting people out of work makes no sense and turning thousands of stores into beer outlets makes no sense,” Campbell added.

PIIN is a network of congregations and organizations across southwestern PA dedicated to building strong communities.

"We opposed these ideas last year and we oppose them again this year. We need our elected leaders to work together to improve our communities, not waste time on risky schemes that will jeopardize the well being of 5,000 families,” said Jonathan Mayo, Vice President of PIIN.

]]>Wed, 30 Jan 2013 15:20:00 ESThttp://www.ufcwpawineandspiritscouncil.com/news/pa-interfaith-network-denounces-gov-corbetts-plans
http://www.ufcwpawineandspiritscouncil.com/news/pa-interfaith-network-denounces-gov-corbetts-planshttp://www.ufcwpawineandspiritscouncil.com/news/pa-interfaith-network-denounces-gov-corbetts-plansDon H. Wert, Executive Director of Pennsylvanians Concerned about Alcohol Problems (PCAP), issued the following statement today in wake of Gov. Corbett’s new effort to dismantle the PLCB and dramatically increase the number of retail beer, wine and liquor outlets in the Commonwealth:

“Such a dramatic expansion of the retail sale of alcohol makes absolutely no sense. It is bad public policy for our Commonwealth and especially for younger Pennsylvanians. Alcohol can be a dangerous substance that harms families and our communities. We are urging Pennsylvanians to stand together to oppose this risky proposal.”

Wert noted that the U.S. Centers for Disease Control’s Community Preventive Services Task Force issued a recommendation against the further privatization of the retail sale of alcohol, based on strong evidence that privatization results in increased per capita alcohol consumption, a well-established proxy for excessive consumption.

“This is a task force of national public health experts that studied this issue and found that privatization is just bad public health policy,” Wert said. “Gov. Corbett needs to reverse course.”

PCAP, founded in 1906, provides alcohol education and counseling services and works closely with dozens of other organizations around the state.

“It seems this governor is attempting to privatize everything from the state lottery to liquor stores,” said Costa. “The privatization of the Lottery represents a significant expansion of gambling without legislative authority. Now this is an equally disturbing expansion of liquor sales which has the potential to directly impact the health and safety of our residents.”

“I have long maintained that we do not need to be privatizing the operations of the Liquor Control Board (LCB),” Costa continued. “What we do need to do is modernize and support the ability of the LCB to operate in an environment where they can be more productive and generate more dollars within a regulated structure.”

“As important, we need to make certain that in the dispensing of alcohol we recognize our obligation to be very careful and very safe,” Costa said. “The LCB’s employees are well-trained and have always done an exceptional job in following the law to the fullest and providing access to products only to those who are of age. There is no motive that would drive them to act otherwise.”

Costa expressed concern with Governor Corbett’s decision to use revenues generated from the sale of the wholesale and retail system to fund school programs. “If we place our focus on modernizing the system, we can use the revenues that are generated for supplementing school funds. We should not pit the future of our children’s education against the expansion of liquor.”

Expressing disappointment in the governor’s proposal and how he planned to use the funds from privatization, Senator Andy Dinniman (D-Chester) raised several important questions about the impact of the plan on education.

“While our school districts are in crisis, with poorer districts on the cliff of fiscal distress and other districts cutting education programs because of pension obligations, what does the governor do?” Dinniman asked. “Does he use LCB sale funds to help poor schools survive, provide pension spike relief or property tax relief?

“No, he uses the funds to create supplemental education programs in four areas, after he made severe and crippling cuts in basic education funding.”

Dinniman concluded that as a result of the governor’s plan, “liquor stores will pop up on one corner while schools are closing on the other.”

"Linking liquor store privatization to school funding is just another way of holding students hostage to the governor's political agenda.

"It's nice that the governor has acknowledged that he created a school funding crisis, but our students shouldn't have to count on liquor being available on every corner in order to have properly funded schools."

"We need to restore the nearly $1 billion in education cuts made by Governor Corbett with an adequate and sustainable funding plan, not with money that doesn't exist.

"Plans to privatize the liquor stores have failed in the legislature every time they have been attempted in the last three decades and rightly so.

"PSEA is willing to work with legislators of both parties in the General Assembly to craft a long-term funding plan that is fair to taxpayers and provides students with the kind of quality education they deserve."

Crossey is a special education teacher in the Keystone Oaks School District. An affiliate of the National Education Association, PSEA represents approximately 187,000 future, active and retired teachers and school employees, and health care workers in Pennsylvania.

Seattle Times, May 26, 2012: Consumers will pay more for many types of liquor beginning Friday, when private retailers can sell spirits in Washington for the first time since Prohibition ended. The price hike, which a wholesalers trade group says could be 15 to 35 percent, comes as a shock to retailers and restaurateurs. But wholesalers say they need to cover increased costs and new investments. Dick Montoya, owner of Señor Frog's restaurant and bar in Lake Chelan, is stocking up on liquor from his local state store to avoid the large price increase he is facing from a wholesaler. "Now that the government is out of the business, what have we created? Something worse," he said.

With added state fees, liquor prices could jump

The Associated Press, May 29, 2012 NACHES, WA – You might want to stock up on tequila and rum if margaritas or mojitos are on your summer menu, because prices are likely going up at many retailers this week — and prices are just one of several big changes in store when Washington abandons its long-held place in the liquor business.

"Different Approach needed" to Turzai Schemes

Liquor Privatization Law Could Drive Prices Up

WASHINGTON STATE (Metro) -- It's still not clear what liquor privatization under Initiative 1183 will mean for consumer prices. John Guadnola, executive director of the Washington Beer and Wine Distributors Association tells heraldnet.com its possible smaller restaurants and retailers in rural areas could get socked with higher prices. Under the state-run system, a bottle of liquor was the same price for everyone, regardless of location. But now, some customers could be charged more if it takes longer to deliver the product.

Read our One-Pagers

]]>Thu, 31 May 2012 14:39:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/wa-some-costs-going-up-as-private-retailers-take-over
http://www.ufcwpawineandspiritscouncil.com/news/wa-some-costs-going-up-as-private-retailers-take-overhttp://www.ufcwpawineandspiritscouncil.com/news/wa-some-costs-going-up-as-private-retailers-take-overSeveral incidents of public drunkenness at the North End Shopping Center have kept township police busy this month.

Three separate charges of public drunkenness in the area of the strip mall on the 1300 block of North Charlotte Street were announced through press releases by the Lower Pottsgrove Police.

David A. Astolfi, 68, Ronald G Gottshall, 62, and David J. Picariello, 56, all face charges of public drunkenness, according to police.

Astolfi was apprehended May 16 shortly before 5:30 p.m. in the parking lot of North End Wine & Spirits after police observed him tripping and stumbling over a parking block while walking, according to the release. When police made contact with him, he allegedly had bloodshot, glassy eyes, his speech was slurred and his breath smelled strongly of alcohol, according to police.

Gottshall was picked up by police on the report of a suspicious person, according to police, around 6 p.m. May 15. He tried purchasing alcohol at North End Wine & Spirits but was refused for his apparent intoxication, the release said. His blood-alcohol level was 0.13 percent, police said.

Picariello was also refused service at North End Wine & Spirits May 5 around 9 p.m. due to his perceived intoxication. His blood-alcohol level was 0.24 percent after police observed him having difficulty walking, the police report said.

Lower Pottsgrove Police Sgt. Robert Greenwood said the arrests are part of a collective vigilance by the police and North End employees.

“I think it’s a combination,” Greenwood said. “We, as the Lower Pottsgrove Police, routinely and regularly patrol the local businesses in the area and also the employees at the North End Wine & Spirts have a zero-tolerance policy for those under-aged or trying to purchase for under-aged people or purchases attempted while intoxicated. (North End employees) call on us and we’re happy to respond.”

In a recent incident, Greenwood was actually speaking with North End employees while his patrol car was parked out front when a man came through who was obviously intoxicated.

“The guy walked and actually fell down in front of the police car,” he said.

Greenwood didn’t say that the amount of arrests were more than usual or out of the ordinary for a location such as that, but that the consistency of arrests is the result of the great relationship between the store and the police.

]]>Tue, 22 May 2012 14:33:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/lower-pottsgrove-police-charge-3-for-public-drunkenness
http://www.ufcwpawineandspiritscouncil.com/news/lower-pottsgrove-police-charge-3-for-public-drunkennesshttp://www.ufcwpawineandspiritscouncil.com/news/lower-pottsgrove-police-charge-3-for-public-drunkennessLawmakers have an opportunity to modernize the Pennsylvania Liquor Control Board (PLCB) and generate up to $75 million a year in new state revenues which could be used to forestall some of Gov. Corbett’s proposed budget cuts.

Senate Bill 1287, now pending before the Senate Law and Justice Committee, would free the PLCB to operate like a modern, wholesale and retail business and deliver a greater return for all Pennsylvania taxpayers, said Wendell W. Young, IV, President of United Food and Commercial Workers Local 1776 and Chairman of the UFCW of PA Wine and Spirits Council.

“This legislation is common sense and all taxpayers win if lawmakers support modernizing this valuable public asset,” Young said.

“It’s far better to generate $75 million more each year in revenue than it does to cut higher education, basic education and the safety net for vulnerable Pennsylvanians,” he added.

Young noted that the PLCB already provides the Commonwealth with more than $500 million a year in revenue – after paying all expenses for the agency’s operation – and creates jobs for more than 5,000 Pennsylvanians. SB 1287 would eliminate the “one size fits all” pricing structure now in place and allow more flexibility based on the market and demands of customers. The legislation also would provide greater flexibility in hiring outside the Civil Service System.

In addition, the bill would allow the PLCB to institute a more efficient and modern procurement process to take more advantage of the agency’s purchasing power.

“As members of the Senate Appropriations Committee focus on the PLCB and the state budget, we are encouraging them to help close the state’s shortfall by supporting this legislation,” Young said.

“The PLCB has made tremendous strides in the past 20 years to transform itself into a world- class retail operation, and the members of UFCWE Local 1776 and Local 23 have supported that effort throughout. This legislation would be another great step forward.”

]]>Mon, 14 May 2012 09:49:00 EDThttp://www.ufcwpawineandspiritscouncil.com/news/modernization-makes-the-most-sense
http://www.ufcwpawineandspiritscouncil.com/news/modernization-makes-the-most-sensehttp://www.ufcwpawineandspiritscouncil.com/news/modernization-makes-the-most-senseWe turned out in large numbers at hearings in Harrisburg and Hershey:

The overwhelming presence of PLCB members at hearings in July and August made a positive impression on legislators, the media and Pennsylvanians all around the state. More and more of them understand the financial importance of the Wine and Spirit shops, their role in keeping alcohol from minors, and the devastation of losing 5,000 jobs.

Because of our testimony and the concerns we raised, the next two hearings have been postponed until further notice. But when they are rescheduled we will need your support – more than ever!

Continue to do the great job you do by serving your customers, keeping alcohol out of the hands of minors, and generating record-high funds for the state of Pennsylvania and its taxpayers.

We need to continue the fight against those who want to eliminate our jobs:

News media reports indicate that privatization remains high on the agenda for House Majority Leader Mike Turzai (R-Pittsburgh.) No one thinks that the privateers have given up.

Ask your family, friends, and community leaders to tell their legislators that Mike Turzai’s plan will hurt you and those around you! Visit WeCantAffordItPA.org to see how easy it is to call or write your legislator.

Revenue:

The stores bring in more than $500 million every year in taxes and profit.

All taxes are collected 100 percent at the point of sale – no delinquency, no collection costs. No other private retailers in the country have such a record.

A private system would require more tax dollars to be spent on collecting unpaid taxes. We never would collect the full 100 percent.

HB 11 proposes 1,250 licenses. The average value of licenses around the country is less than $250,000. That would mean around $300 million in one-time revenue for selling the stores – NOT the $2 billion or more that State Rep. Mike Turzai carelessly throws around.

Public Safety:

This year the U.S. Centers for Disease Control’s (CDC) Task Force on Community Preventive Services found that privatization leads to increased consumption and increased excessive consumption. That’s why the CDC has recommended against any further privatization of alcohol sales.

Turzai’s HB 11 calls for doubling the number of retail outlets in PA, which would be a disaster for communities all across the state:

Nuisance stores on many corners

More drinking by minors

More drunk driving

More social problems linked to alcohol abuse – including crime, domestic violence and child abuse.

PA has the nation’s seventh lowest rate of underage drinking and binge drinking.

UFCW members in PA’s Wine and Spirits stores conduct more than one million card checks every year. Employees are trained to spot phony ID cards, and our record of doing so is unmatched anywhere in the nation.

Groups such as SADD, the PA DUI Association, the NAACP and other organizations concerned with excessive and underage alcohol consumption all oppose privatization.

Jobs:

The stores provide 5,000 people with family-sustaining jobs and decent benefits. As our economy struggles to recover, why does Mike Turzai want to put 5,000 more people out of work? His bill provides no meaningful protection for workers. His “tuition credits” are meager and are for full time workers only! Turzai’s bill would destroy current jobs and create low-wage, no-benefit jobs that do nothing to grow our state’s economy.

I want to congratulate the 13 Bucks county residents who received Youth Prevention Volunteer awards from the Council of Southeast Pennsylvania Inc. for their work promoting drug- and alcohol-free behavior for young people in our local communities.

This kind of notable public service complements the way state employees, members of United Food and Commercial Workers Union Local 1776, who work in Bucks County's state-run Wine and Spirits stores, conduct the sale of alcoholic beverages.

This is just one more example of why it is a bad idea for our elected officials in Harrisburg to be considering privatizing the liquor stores.

The mutually beneficial mission of limiting access to and abuse of alcohol and drugs by young people by these award- winners and our Wine and Spirits employees is exactly the correct balance when it comes to how a dangerous drug like alcohol is sold in our commonwealth.

Our elected officials in Harrisburg need to keep this in mind as they assess the social consequences of privatizing the liquor stores.

It's not just about the money. It is also about the health and safety of our local communities.

The CDT’s Jan. 24 editorial calling for the sale of Pennsylvania’s Wine and Spirits stores is wrong on several points, because it relies on incorrect information circulated by privatization supporters.

First, we have a $2 billion myth. State Rep. Mike Turzai thinks he can raise $2 billion to help close Pennsylvania’s $4 billion or more budget deficit. However, even the most ardent privatization supporters concede that nothing can be done in time to help this year’s budget.

To get $2 billion, the 850 licenses envisioned by Rep. Turzai would have to bring an average of more than $2.3 million. But this is achieved nowhere in the country. New Jersey licenses average around $250,000; West Virginia’s closer to $200,000. A recent news story quotes a Florida businessperson buying TWO licenses for $460,000. Wine and Spirits stores provided the state budget and taxpayers $513 million in profits and taxes last year. How do we replace that?

Second, peer-reviewed studies show that states that control liquor sales have much less underage drinking than private store states. Pennsylvania has the 7th lowest rate of underage drinking in the country. Recent studies show 14.5 percent fewer high school students reported drinking and 16.7 percent fewer reported binge drinking in the past 30 days, and lower consumption rates are associated with a 9.3% lower alcohol-impaired driving death rate in states which keep control of alcohol sales.

A just completed study of the partial privatization of alcohol sales in British Columbia reveals a shocking 27.5 percent increase in alcohol-related deaths for every additional private liquor store per 1,000 residents, and a dramatic, 83 percent increase in sales by private stores, despite only a 34 percent increase in the number of stores. Virginia’s Republican governor recently dropped privatization efforts after research projected an additional 220 alcohol related traffic deaths annually if sales were privatized.

Promoting public safety is a core function of state government performed admirably by well trained employees in wine and spirits stores, where state police have documented only TWO instances of sales to minors over the past seven years. That record is unmatched anywhere.

Which brings me to the editorial’s last point: that current workers should be given first crack at private liquor store jobs, with the current union contract kept in place. I’ve found no such provision in Rep. Turzai’s legislation from last year. Wine and Spirits store workers aren’t getting rich, but these are family sustaining jobs with benefits. Do you think Wal-Mart, CVS, or Uni-Mart would even bid on a license with that proviso? Consider also that a Pittsburgh newspaper survey comparing prices in Pennsylvania to prices in surrounding states found 26 instances of lower prices for the same product here, and 24 instances of higher prices in PA. There’s no reason to think consumer would see lower prices across the board from privatization.

But, if you live in Snow Shoe, Milesburg, Howard, or Port Matilda, get ready to spend more on gas. History shows when liquor sales go private, stores congregate in high population, high income areas, with small towns and rural areas left out. When West Virginia controlled sales, every county had at least one outlet. Now, five rural counties have no stores, and many others have a few shelves in the back of drug or convenience stores.

Pennsylvania’s wine and spirits stores offer a good selection at competitive prices, support 4,500 family sustaining jobs, provide the state’s taxpayers a guaranteed more than half a billion dollars every year, and help keep minors away from alcohol. Why change something that’s working so well?

Instead, people look for the easy way out and end up making things worse.

It's like struggling in quicksand: You only sink faster.

Sure, don't struggle, and you'll still sink. But you'll sink more slowly, and that might give you time to think of some way out of the muck.

So spanking-new Gov. Tom Corbett, facing an estimated $4 billion budget deficit, has a short list of quick-fix reforms designed to save money.

But this new dog's list is full of old tricks.

High on his list is the old chestnut of selling - or privatizing - the state's monopolistic liquor and wine retail stores.

This $1.7 billion retail operation could be auctioned off for somewhere between $1 billion and $2 billion.

Well, even a $2 billion plug leaves an equally large hole in the budget.

Meanwhile, the state would be killing the goose that last year pumped $513.7 million into state coffers, including $383 million in taxes and some $90 million in profits from the 625 state stores.

Then there's the indirect positive effect on the private sector economy, including $38.7 million it pays landlords for leases, $35.8 million in warehousing and transportation services and the $25.8 million in payroll.

The state liquor monopoly was a bad idea when it was set up in 1933 at the end of Prohibition. But we've been stuck with it and selling it now seems like an even worse idea because we'd be losing money in the long run.

There were proposals to sell the system in the 1970s, 1980s and 1990s. All failed because they didn't make economic sense.

Proponents of privatization say selling off the state stores would give individuals a chance to start up a small business and grow it.

But in this economy, only those who are already sitting on piles of cash are going to be able to afford to buy stores from the state.

It would be a one-shot infusion of cash that won't solve the deficit, but instead would get rid of a system that pumps hundreds of millions each year into the state and local economies.